RevPAR Calculator

What RevPAR tells you

RevPAR (revenue per available room) is the room revenue you earn for every room you could have sold, whether it was sold or not. It combines price and occupancy in one number, which is why revenue managers, owners and investors use it to compare months, seasons and competing hotels. A hotel can raise occupancy by dropping rates, or raise ADR and lose occupancy — RevPAR shows whether the trade-off actually earned more.

Worked example

A 30-room hotel in a 30-day month has 900 available room nights. It sells 600 room nights and earns ₹18,00,000 in room revenue (excluding GST).

• Occupancy = 600 ÷ 900 = 66.7%
• ADR = ₹18,00,000 ÷ 600 = ₹3,000
• RevPAR = ₹18,00,000 ÷ 900 = ₹2,000 (or ₹3,000 × 66.7%)

If the hotel had sold 680 room nights at ₹2,600, revenue would be ₹17,68,000 and RevPAR would fall to about ₹1,964 — more rooms filled, but less money earned per available room.

Getting RevPAR right

• Exclude GST. GST collected is not your revenue. Use net room revenue.
• Exclude food, laundry and other income. For total revenue per room, use TRevPAR in our GOPPAR calculator.
• Count every room in inventory. Rooms out of order for repairs are usually still counted in RevPAR so the number stays comparable. Your occupancy rate calculator can show both views.
• Compare like with like. Compare a weekend with the same weekend last year, or your RevPAR with similar hotels in your city, not with a different season.

How to grow RevPAR

Move rates by demand rather than keeping one rate all year, open minimum-stay rules on peak dates, sell more on low days with packages and corporate deals, and protect ADR on long weekends and festival dates. Track ADR separately with the ADR calculator so you know which lever moved.

Frequently asked questions